Environmental scanning on the Internet

This study investigates the important organizational task of environmental scanning in an Internet context. A theoretical model relating potential causal factors to effectiveness of environmental scanning was formulated based on a synthesis of environmental scanning literature that took into consideration the Internet context. A questionnaire was developed for data collection. Responses from 105 organizations were tested for convergent and discriminant validity before the theoretical model was assessed using PLS analysis. Results showed that smaller organizations tend to scan more frequently on the Internet, both use of external consultants and volatility of competitor sector tend to cause organizations to scan more frequently on the Internet, and both use of external consultants and scanning frequency on the Internet tend to result in effectiveness of environmental scanning. Additional insights on these results were obtained through telephone interviews with 10 respondents.